The sole issue in this case is whether California’s levy on limited liability companies (“LLCs”), codified as Cal. Rev. & Tax. Code Section17942 violates the Commerce Clause of the United States Constitution or the Due Process Clauses of the United States Constitution.

The Court finds that the Levy indeed violates both the Commerce and Due Process Clauses. Accordingly, it cannot be applied to Plaintiff Northwest Energetic Services, LLC, and Plaintiff is entitled to a full refund of all amounts it paid (including interest and penalties) pursuant to Section 17942 for the calendar years 1997 and 1999 through 2001 (the “Years at Issue”), plus refund interest as provided by law.

Click here for the protective claim for refund.